Inflation slowed sharply in March, new data showed Thursday, underscoring the continued strength and resilience of the economy ahead of President Trump’s aggressive trade moves.

Policymakers and economists say the latest data is only a temporary reprieve as tariffs could stoke higher inflation.

Soaring consumer inflation expectations, driven to a level not seen since the early 1980s, coupled with jittery markets and rising U.S. Treasury yields on Friday amplified the Federal Reserve's dilemma in determining whether the economy is facing a new price shock or headed for a downturn.

A new survey from the University of Michigan shows consumers souring sharply on the economic outlook as the trade war heats up.

Policymakers at the US Federal Reserve on Friday warned of higher inflation and slower growth ahead due to Donald Trump's tariff policy, which has sent shock waves through global markets.